Resolute, which has a plant in Fort Frances, announced the recent indefinite idling of its newsprint machine at its Calhoun mill in Tennessee.
“The idling comes as a result of a decrease in demand for newsprint, coupled with high operating costs for the machine, which produced 215,000 metric tons (of paper) per year,” according to the company.
In a news release, Resolute leadership said the decision follows the international publicly held company’s March 11 acquisition of 49 percent interest in Calhoun Newsprint Company.
Resolute and other forest products companies have said they are shifting more focus toward sawmills or packaging production in expectation of the ongoing housing resurgence and more and more online purchases, respectively.
The Calhoun mill employed 610 workers, but the decision to shut down the newsprint operations will impact approximately 150 of the mill’s positions. Resolute still will operate its two specialty paper machines and pulp dryer in Calhoun.
Resolute stated that it recognizes the impacts its decision will have on affected employees and their families. Those folks will receive severance packages in accordance with their labor contract. The Montreal-based company also said those employees who lost their jobs will receive government assistance in finding new lines of work.
Late last year, Resolute idled two of its largest operations putting almost 240 people out of work at the Fort Frances’ plant.
However, the company’s said it’s been looking for ways to restart the idled kraft mill and paper machine No. 5. The kraft mill made about 200,000 metric tons annually of pulp while paper machine No. 5 produced up to 105,000 metric tons of specialty paper.
Resolute still has two machines operating across the Rainy River with almost 430 employees, according to its website.
